FSIG vs SPY
First Trust Limited Duration Investment Grade Corporate ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FSIG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.44% | 0.09% | |
| AUM | $1.5B | $789.1B | |
| Dividend Yield | 4.80% | 1.01% | |
| Holdings | 322 | 505 | |
| YTD Return | +0.75% | +13.39% | |
| 1Y Return | +2.62% | +22.52% | |
| 3Y Return (annualized) | +5.16% | +21.36% | |
| 5Y Return (annualized) | - | +13.19% | |
| Volatility (annualized) | 3.2% | 15.3% | |
| Max Drawdown | -6.9% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 17, 2021 | Jan 22, 1993 |
FSIG vs SPY Performance
First Trust Limited Duration Investment Grade Corporate ETF (FSIG) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FSIG returned +2.62% while SPY returned +22.52%. Year to date, FSIG is up 0.75% versus a gain of 13.39% for SPY.
Over three years, FSIG compounded at +5.16% per year against +21.36% for SPY. Across the full 5-year window we track, SPY has the edge at +8.84% annualized vs +2.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.2% for FSIG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -6.9% for FSIG and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSIG charges 0.44% per year while SPY charges 0.09%. On a $10,000 position that is $44 vs $9 annually, a gap of $35 per year that compounds over a long holding period. On income, FSIG currently yields 4.80% against 1.01% for SPY.
Holdings Overlap
FSIG and SPY share 0 holdings out of 730 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FSIG or SPY?
FSIG has an expense ratio of 0.44% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, FSIG or SPY?
Over the past year FSIG returned +2.62% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), FSIG annualized +2.68% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, FSIG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.2% for FSIG. Worst drawdown: FSIG -6.9% vs SPY -56.5%.
Should I hold both FSIG and SPY?
FSIG and SPY have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSIG and SPY?
FSIG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 730 unique securities.
Which pays a higher dividend, FSIG or SPY?
FSIG yields 4.80% while SPY yields 1.01%, so FSIG currently pays the higher dividend yield.
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